When are the Euro-zone flash CPIs and how could they affect EUR/USD?
Euro-zone flash CPIs overview
Eurostat will publish the first estimate of Euro-zone inflation figure for December at 1000 GMT today. The headline consumer inflation (CPI) is expected to tick down to 1.8% on a yearly basis while the core inflation is seen holding steady at 1.0% y/y rate during the reported month.
Deviation impact on EUR/USD
How could affect EUR/USD?
Yohay Elam, FXStreet's own Analyst offers important technical levels ahead of the key release: “1.1425 serves as an initial hurdle as it is the convergence of the BB 4h-Middle, the SMA 100-1h, the SMA 5-1d, and the BB 1h-Upper. Further above, the hard cap is at 1.1485 where we note the potent 100-day SMA, the BB 1d-Upper, the PP 1d-R2, and last week's high. It will be tough for the pair to move above this level.”
“Looking down, support is slightly weaker. 1.1355 is the confluence of the BB 1h-Lower, the Fibonacci 61.8% 1m, last week's low, and the Fibonacci 61.8% one-day. The path low is full of minor cushions, but significant support awaits only at 1.1272 where we see the meeting point of last month's low, the PP 1d-S2, and the Fibonacci 161.8% one-week,” he added further.
Key Notes
• Eurozone: Core inflation likely to remain unchanged at 1.0% y/y - TDS
• EUR/USD Forecast: Temporary calm before two storms
• EUR futures: recovery could extend further
About Euro-zone flash CPIs estimate
The Euro Zone CPI released by the Eurostat captures the changes in the price of goods and services. The CPI is a significant way to measure changes in purchasing trends and inflation in the Euro Zone. Generally, a high reading anticipates a hawkish attitude which will be positive (or bullish) for the EUR, while a low reading is seen as negative (or bearish).
Author
Haresh Menghani
FXStreet
Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.
